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Yanbu: set for new growth

Yanbu: set for new growth



Key opportunities for SMEs at Yanbu

The proposed Yanbu industrial complex in Yanbu Industrial City will play a role in national economic diversification and promote sustainable development, says a top official

December 2018

The establishment of an integrated industrial complex in Yanbu industrial city in partnership with Saudi Aramco and Saudi Basic Industries Corp (Sabic) will contribute to creating opportunities for setting up small and medium enterprises (SMEs) and factories, stated Governor of Medina Prince Faisal bin Salman bin Abdul Aziz in a report.

The Prince indicated that the complex will play a role in national economic diversification and promote sustainable development.

Prince Faisal made the remarks during a visit to Yanbu province, where he congratulated the people on the project, which he described as one of the mega projects in the world, explaining that it will be developed with Saudi manpower and unprecedented international technology.

Saudi Aramco and Sabic recently announced that Yanbu will be the site for an integrated industrial complex they plan to build to convert crude oil to chemicals (COTC).

The governor pointed out that the Center for Economic Development in the region will coordinate with the Royal Commission in Yanbu, Aramco, and Sabic to develop training programmes in order to raise the level of competencies and professionalism. He thanked Aramco and Sabic for this project which is a remarkable leap in the petrochemical world.

CEO of Royal Commission of Yanbu and Jazan, Alaa Nasif, lauded the project of converting crude oil to chemicals, executed by Aramco and Sabic, which is a revolution in the petrochemical industry globally.

Naseef said the project will be built according to the highest engineering standards. It is expected to process 400,000 barrels per day of crude oil, which will produce around 9 million tonnes of chemicals and base oils annually. It is expected to start operations in 2025.

Nassif noted that the project offers new opportunities to build leading industries in the Kingdom through enhancing the value of crude oil production in Saudi Arabia, ensuring comprehensive integration to hydrocarbon industries, contributing to economic diversification by producing ready-made or semi-ready materials, and developing advanced technologies.

The new Yanbu complex will generate an estimated 30,000 direct and indirect jobs, as well as contribute 1.5 per cent to the Kingdom’s gross domestic product.

The project is in line with Saudi Arabia’s economic diversification plans and job creation initiatives. The Kingdom intends to support its downstream sector by increasing production and value across the entire hydrocarbons chain.

At the time of signing, Saudi Aramco’s president and CEO Amin Nasser said: “This project converges the commercial and strategic interests of both Saudi Aramco and Sabic, while reinforcing Saudi Aramco’s efforts to optimise the investment of our petroleum resources.

“This project converges the commercial and strategic interests of both Saudi Aramco and Sabic.”

“COTC will also help expand our downstream portfolio, reducing our focus on the transportation sector and securing new and promising commercial opportunities.”

In October, Saudi Aramco and French firm Total agreed to begin engineering studies for the construction of a $5 billion petrochemical complex in Jubail, Saudi Arabia.

In April this year, the two companies signed a memorandum of understanding (MoU) to build the complex, which will be located next to the Satorp refinery.

The Saudi Arabian company will own a 62.5 per cent in the facility while Total will hold the remaining 37.5 per cent.

Said to be the first petrochemical plant in the Gulf region to be integrated with a refinery, the new facility will be able to produce 1.5 million tonnes of ethylene and related high-added-value petrochemical units per annum.

Nasser said: “Satorp’s second-phase expansion represents a quantum leap in Saudi Aramco’s downstream strategy to maximise our hydrocarbon resources and help position the Kingdom as a chemicals manufacturing hub, thus supporting economic diversification.

“Today’s signing will deliver on multiple levels, from high-value fuels and petrochemical products for consumers on three continents to meaningful job creation and local content development.”

The petrochemical complex will provide feedstock to other petrochemical and speciality chemical plants. It is expected to begin production in 2024.

In addition, other petrochemical and speciality chemical plants located in the Jubail industrial area will benefit from the feedstock provided by the project. This will represent an additional $4bn investment by third-party investors.

The overall complex will represent an investment of around $9 billion and is expected to create 8,000 local direct and indirect jobs.

Total chairman and CEO Patrick Pouyanné said:  “This world-class complex also fits with our strategy to expand in petrochemicals by maximising the synergies within our major platforms, leveraging low-cost feedstocks and taking advantage of the fast-growing Asian polymer market.”

The Saudi Aramco Total Refining and Petrochemical Company (Satorp) was set up in June 2008 to build a refining and petrochemical complex in Jubail II industrial city.

 


 

$370m for 11 infrastructure  projects

Saudi Arabia-based Royal Commission for Jubail and Yanbu has signed 11 contracts at a combined value of SR1.361 billion ($370 million) to implement projects that will contribute to developing infrastructure and piling works. The projects will be distributed in Jubail, Yanbu, Ras Al Khair, and Jazan Economic City, according to an official statement. The deals include setting up projects in the electricity, industry, education, engineering, and healthcare sectors. These investments are part of Saudi Vision 2030, intended to diversify the kingdom’s economy and invest more heavily in infrastructure.

 

 




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